Steel Market Update scrap sources are advising us to expect ferrous scrap prices have bottomed and will increase once the November negotiations get underway next week with the domestic steel mills. We are hearing scrap prices should increase by a minimum of $10 per gross ton and some items could go up by as much […] The post November Scrap Prices Expected to Increase by $10-$30 appeared first on Steel Market Update.
Steel Dynamics reported higher flat rolled prices resulted in an 11 percent increase in earnings in the third quarter. Net earnings were $284 million on net sales of $2.1 billion. Adjusted net income, including a $5 million litigation settlement charge, was $157 million for the quarter. SDI steel production was at 85 percent capacity in […] The post SDI Believes Weaker Demand is Seasonal, Not Structural appeared first on Steel Market Update.
The conversation has begun regarding when flat rolled steel prices will end their slide and reverse course. Flat rolled steel prices have been in a steep decline since mid-June 2016 when benchmark hot rolled prices peaked at $635 per ton ($31.75/cwt, SMU index average) FOB domestic mill. Since then steel prices have retreated $145 per […] The post Are Flat Rolled Steel Prices Poised to Move Higher? appeared first on Steel Market Update.
Steel Market Update ferrous scrap sources advised us over the weekend that scrap negotiations have wrapped up between the dealers and the domestic mills and that steel mills, once again, have walked away the winners as scrap prices dropped across the country. However, the weakest areas are those furthest away from the east coast where […] The post Scrap Prices Drop for October: Are We Near a Bottom? appeared first on Steel Market Update.
Market sources are advising Steel Market Update to expect lower ferrous scrap prices in October. We are hearing the expectation by the dealers is for prices to drop anywhere from $15 to $40 per ton with most believing the adjustments will be in the $20 per ton range for obsolete grades and $30 per ton […] The post Ferrous Scrap Prices Poised to Drop in October appeared first on Steel Market Update.
The following article on the hot rolled coil (HRC) and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: The focus in HR this past week has been primarily in Q4’16 and 1H’17. Futures prices have dropped to the psychological $500 level […] The post Hot Rolled Futures Drop to the Pychological $500 Level appeared first on Steel Market Update.
Scrap prices surprised scrap dealers and have deteriorated more than what was expected going into September negotiations with the domestic steel mills. Here is how one of the national scrap companies portrayed the tone of the negotiations: “As you can imagine, it’s been a hectic time since the return from the holiday last week. As […] The post A Look at Midwest Scrap Pricing for September appeared first on Steel Market Update.
The prices for flat rolled steel have dropped over the past few weeks which is creating a situation where the domestic steel mills want to recoup a portion (or all) of the reductions by negotiating lower ferrous scrap pricing. The mills are asking for $20 per gross ton across the board (HMS, shred, prime grades) […] The post September Scrap Has Mills Pressuring Prices with Mixed Results Expected appeared first on Steel Market Update.
SMU Sources are advising us that obsolete grades of ferrous scrap are trading sideways (prices remaining the same as last month) while prime grades move lower by $10 to $15 per gross ton in the Chicago, Ohio Valley, Detroit and Indiana markets. Prior to negotiations beginning, the expectation was for obsolete grades to remain intact […] The post Ferrous Scrap Trading Sideways on Obsolete to Down $10-$15 on Primes appeared first on Steel Market Update.
Scrap trading has been slow to develop in all but the Detroit area mills. The domestic steel mills are trying to reduce the spread between shredded scrap and prime grades of scrap (busheling and bundles) which in some cases has expanded to $70 per gross ton. Scrap guru Michael Marley reported this afternoon that the […] The post Final Thoughts appeared first on Steel Market Update.